- Spot BTC ETFs see $146 million worth of crypto assets pulled from traders on Monday
- BlackRock’s IBIT ETF remains the largest Bitcoin holder with 305,000 tokens
- The Federal Reserve’s decision to keep rates unchanged may catalyze retreat
Spot BTC ETF Sustain Redemption Wave
The spot Bitcoin exchange-traded funds in the US marked a losing day to kick off the trading week. A total of $146 million worth of the leading crypto asset was withdrawn from the novel investment vehicles. The fairly substantial pullback was an indication of investor cautiousness right after a key economic event took place last week.
It was the Federal Reserve’s time to decide on interest rates. The US central bank, headed by Fed chief Jay Powell, chose to stick to its current benchmark level of 5.50%. The news sent shockwaves across the crypto space with Bitcoin prices slipping as investors ran to the safety of the US dollar.
Fed’s Rate Decision and Bitcoin’s Price
This week’s spot BTC ETF redemptions might be prompted by the prospect of interest rates staying elevated for the foreseeable future. The Fed has communicated just one reduction to borrowing costs — a move largely anticipated by the market crowds, and crypto proponents alike.
With no sizable cuts to interest rates, the supply of money will remain expensive, which could dampen optimism about the crypto space.
Still, the spot BTC ETF space in the US has been faring well. BlackRock’s IBIT ETF remains the number one vehicle by assets under management, overseeing 305,991 tokens. Next up is Grayscale’s GBTC, sitting on 280,368 BTC. And the third place goes to Fidelity’s FBTC fund, holding 170,135 orange coins.
In total, all 11 approved and operating Bitcoin exchange-traded funds in the US collectively own 873,006 Bitcoins or just about 4% of the entire amount of Bitcoin in circulation.
